Question
You are valuing a gold mine as a real option using the binomial model with one step being 3 months long. You estimate volatility of
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You are valuing a gold mine as a real option using the binomial model with one step being 3 months long. You estimate volatility of gold price to be 15% per year and risk-free interest rate to be 4% per year. Find the risk-neutral probability of gold price going up.
| a. | 50% | |
| b. | 55% | |
| c. | 60% | |
| d. | 45% |
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The Emerald Handbook On Cryptoassets Investment Opportunities And Challenges
Authors: H. Kent Baker, Hugo Benedetti, Ehsan Nikbakht, Sean Stein Smith
1st Edition
1804553212, 978-1804553213
